Can they really be doing this? Posted: Monday, May 15, 2006 6:05:49 PM

I was just wondering if someone can help me out? I currently work at a salon in NJ. It is a new, beautiful, huge salon and spa. The menu is based on the level system and the pay is a sliding scale %. We are charged $7 per color service (which is amazing since the color only costs $4 a bottle). I am new and on the first tier of the level system, since I only recieve 45%, after the color charge is deducted, plus taxes and benefits that I pay for, I only take home about 20%. Now the owner is trying to implement this "new charge" if we are slow he is going to deduct $30 from our pay per slow day. I asked what constitutes as a "slow day" and never got a straight answer. So.... I don't know if there is one, two or no clients whether or not I'm going to lose $30. If for some reason I have a day in which I don't have any clients, this means I owe the owner $30. Doesn't this sound like I'm paying a fee... like a I'm renting space? I should mention again that I'm in NJ and booth rental is illegal. Any thoughts, opinions? I really need some advise.

P.S. Britboy, I've read quite a few of your posts and although opinionated, you do have a lot of great advice. PLease help!

Can they really be doing this? Posted: Monday, May 15, 2006 6:05:49 PM

I was just wondering if someone can help me out? I currently work at a salon in NJ. It is a new, beautiful, huge salon and spa. The menu is based on the level system and the pay is a sliding scale %. We are charged $7 per color service (which is amazing since the color only costs $4 a bottle).

The color may be $4.00 but there's also other costs involved, it might take 2 bottles for longer hair, or a 2 or 3 color weave, there's the developer which is $4.00 a quart, the foils, the additives, the de-tangler and the conditioner. Depending on the prices for the service $7.00 may be a true cost to cover...You would be surprised to find out what product costs really are in a salon, a salon owner knows them. It's generally accepted that the salon spends 9-10% of revenues on product alone and that's if the owner is careful and spends it well and the staff don't waste it by being careless...

That doesn't really seem too out of order...

I am new and on the first tier of the level system, since I only recieve 45%, after the color charge is deducted, plus taxes and benefits that I pay for, I only take home about 20%.

The taxes are a sad part of life aren't they? It's too bad but we all have to pay them, the salon owner has no control over this cost, remember that he/she's also paying half of your Social Security taxes too. As to the benefits, well that's what you are paying for, benefits. If they aren't paid for they won't be there when you need them, so, again, it's a cost that you need to accept. If you add back in the taxes and benefits, you are probably making 40%, which while not a fortune, is pretty standard.

Now the owner is trying to implement this "new charge" if we are slow he is going to deduct $30 from our pay per slow day. I asked what constitutes as a "slow day" and never got a straight answer. So.... I don't know if there is one, two or no clients whether or not I'm going to lose $30. If for some reason I have a day in which I don't have any clients, this means I owe the owner $30. Doesn't this sound like I'm paying a fee... like a I'm renting space? I should mention again that I'm in NJ and booth rental is illegal. Any thoughts, opinions? I really need some advise.

I've never heard of penalizing the staff for a lack of business, it's a new one on me. It really doesn't seem legal, perhaps you should talk to the Labor Department in your State about it and see if it stands up legally.

P.S. Britboy, I've read quite a few of your posts and although opinionated, you do have a lot of great advice. PLease help!

Sorry that I can't be of more help but it's a new situation. Good luck.

Thank you for your advise. I understand that I have no control over taxes and benefits. Thats just something I'm going to have to live with. I've worked in a couple other salons and spoke with friends in the business and I still think that $7 is a little high. If a client has really long hair we will charged double the $7 and if the person gets a single process plus highlights, we will also get charged double. Regardless, I know there is nothing that I can do about this charge either. I'm going to contact the Labor Dept. and also the Board of Cosmetology. I don't know if the Board will be able to help me with this situation but I need to talk to them anyway... I've been researching opening my own salon for about 6 months now... working on the business plan, researching prices for furniture, utilities, advertising , products, etc., but that's a completely different thread! Be sure to stay tuned!

When you said "The menu is based on the level system and the pay is a sliding scale %" did you mean that the client pays less for entry level stylists and entry level stylists are also paid a lower percentage? Just asking, as I assumed that was what you meant.

The idea of a $30 dollar charge for slow days and the fact that the owner gave no particulars when asked, is leading me to think maybe he said that in a rash moment. I don't think he can do that especially in NJ. Not only could complaints come in but as you said it is a non booth rental state and I don't think with a new salon an owner would want to go there. Maybe he is out on a limb with expenses at the moment and was reacting emotionally. I don't know. I'm not sure complaining about product costs being taken out before commissions are determined is valid as many salons do that, but the slow day charge sounds concerning.

Has this owner owned other salons or other businesses? Finding stylists in NJ is not all that easy especially if they have a pre existing clientele, but even if they don't finding good people is hard. (One reason an owner shouldn't be saying things with no particulars, rashly, if he was. This slow day charge comment, has me worried that the owner may not be a people person, and that isn't a good sign, especially for an owner. Instead of making threats which will render the salon without stylists, he should be presenting ideas stylists might try to bring in more clients.)

What area of the state is the salon in and what are the prices for services? The median income in the surrounding area and the visibility of the salon are as important as how fancy and large the location is, in NJ anyway. I've seen some 4 chair salons with several people waiting and several processing simultaneously and I have also seen large salons with empty chairs and not enough stylists even if the chairs were to be filled. (That's probably true in every state though.) Doesn't the salon charge more for long hair, extra for single processes with highlights? If you accept/understand a color charge and you are on a commission percentage than although the color charge is increased with these things, so is the price of the service and the commission amount becomes higher in dollars.

NJ has great variations in service pricing around the state depending on the demographics of the neighborhood. Single process, color on average ranges from $45 to $70, foils anywhere from $70 to $140, although I am sure there are some higher and lower. I have been noticing that the important variables in prices charged for hair services are location and decor, and the least important is salon size. Of course the reputation of the stylists is also very important as is the image of the salon. What are the prices like and how do they compare to the competition in the area? Having a 45% commission would equal more money on a $70 color service ($31.50 before material costs, taxes and benefits) than even a 60% commission on a $45 color service ($27 before materials, taxes and benefits). So when stylists look for salons to work in they should consider the prices for services as it is just as important as the commission percentage.

Start up costs, selections, and ideas is a good idea for a new thread! Maybe under the management owner section?

A few things that I have learned that you may want to look into or think about...I am fairly new to the industry as well..

Did you sign anything authorizing the owner to take off so much per color?? If not, look into wether he can or not. You say a tube of color is $4 an tube. It does not cose $3 worth or developer to process a color, as about that, I know this. Did you get or have you seen in writting what he concideres a 'full application' of color? Is it half a tube or a full tube? In my opinion and experience, there is no reason for you to be paying for a full tube of color if you used half. Check that out. Using lightener has different costs then color, ask about that. Salons I have worked had charge differently dependng on wether you did a partial head of foils, a shor hair color, a long hair color, a full head of highlites..or does the owner charge the same for everything, and how does the owner know what you are using for product. Is it tracked in the computer how much color you use, or do they just go by how many colors you did?

Make sure you get a clear answer on everything...I worked at a salon where nothing was ever given in writting, I never had to sign anything..and it turned out that she had been taking things off my checques illegally. She would look in the appointment book and go.." Ok, Victoria did 4 colors this week, so..that equals $xx" she never concidered how much color I acctually used. There were people being charged less then me even though I knew they used more product and vice-versa.

The $30 0n a slow day, I agree, sounds shifty...if chair rental is not legal in NJ, thne what is the owner concidering this? It shouldn't cose them anything to have you there that day...they are not paying you by the hour then it shouldn't matter. I would defiently be worried about that.

Any boss/owner/person that wont give you a straight answer about things is definetly not someone you want to be around.

Above all though hun...no matter what it is...get anything they agree to or you agree to in writting, that way, if something happens, you can refer back to it..

funhairgirl, when you complete your cost per service analysis for your business plan...$7 per color chemical service is pretty accurate, and yes double if more than one color service is done. Be sure to ask them for clarification on the new daily charge, good luck

I've been researching opening my own salon for about 6 months now... working on the business plan, researching prices for furniture, utilities, advertising , products, etc., but that's a completely different thread! Be sure to stay tuned!